Managing People†Lenovo China Essay

Summary This assignment expresses and evaluates the Lenovo China’s human resource management from five parts. At stating, it introduces simply the history of Lenovo China. Then, describing and analysing approach of people management in Lenovo is the key point through five elements of overall approach, system of rewarding performance, employees’ recruitment, methods to improve development employees and the appraisal of individual performance. In particularly, the last three is talked mainly. However, the appraisal system has a little problem. Next, it mentions the leadership of Lenovo China which is mixture Chinese and western style. At end of the assignment, it gives some personal idea and recommendations on the appraisal system. 1.0Introduction The report will appraise human recourse management and give recommendations for Lenovo China. At beginning, it will introduce the background of Lenovo China. Then it will describe Lenovo China’s approach of people management from five aspects. Especially, it will focus on selecting and developing employees as well as the appraisal. Then it will talk about Lenovo China’s leadership and organizational culture. Finally, it will give personal opinions on Lenovo China and evaluation. 2.0People management in Lenovo China 2.1Introduction of Lenovo China The Lenovo China was established in 1984, turning the name of â€Å"Personnel Department† into â€Å"Human Resources Department† in 1995 when they had been an increasing awareness of the importance of persons (Ge, 2004). Nowadays, Lenovo China was a successful company because Lenovo China had ranked NO.450 in the ranking of the fortune Global 500 (CNN, 2011). 2.2Approach of People management in Lenovo China 2.2.1Overall approach The overall approach of Lenovo China is the mixture of classical approach and modern management theory with combination of X and Y theory (Mullins, 2010). In classical approach (Mullins, 2010), Lenovo China do not use absolute power and control over people. They think highly of human resource, because they know the importance of the talents (Ren, 2003). In addition, Lenovo China’s leaders also communicate with employees and listen to their opinions in order to gain their trust, which could obtain more ideas for development of the corporation. In spite of this, Lenovo China still have a complete set of the corporation system to manage people (Pi, 2011). In Lenovo China, as employees are doing any work, they must comply with these three principles: 1.insisting on working according to the rules if there are rules. 2. Working according to the rules in advance and coming up with recommendations timely, if the rules are not reasonable. 3. Applying and working according to the cultural value criteria of Lenovo China, if there are no rules (Pi, 2011). Employees of Lenovo China are in a condition of relative strict control, but they will be provided properly freedom to conduct activities and take responsibilities. For instance, technicians in Lenovo China have rights to adjusting their work hours with freedom (Deng, 2002). Thus, Lenovo China could offer opportunities to fulfil their ego needs. The overall approach is with Chinese and western characteristics of management and combine well these two management model. Lenovo China do not allow individualism like America, but they advocate collectivism. However, they are not like the old Chinese management model—centralization. Thus, the new generations can not only fulfil themselves but enjoy freedom at the same time. There are rules to control yet. 2.2.2System of rewarding performance Lenovo China apply mainly the Alderfer’s ERG theory (Mullins, 2010) to motivate employees, because they have two approaches which are physical satisfaction and psychological satisfaction (Pi, 2011). At beginning, for old generations of Lenovo employee, they have higher psychological demands. In addition to prove that their own knowledge can transform into treasures, their purposes are concerns about development of China. These people do not ask for much in physical satisfaction (Ren, 2003). On the contrary, there is a strong collective sense of honour between the old generations of Lenovo people. Hence, the motivation for them is development of collective spirit and motivation of goals (Ren, 2003). Further, at present, the new generations of Lenovo people is primarily motivated by physical satisfaction, because a plenty of foreign corporations and joints ventures were entering into China after the 1990s with offering high wage to attract diverse people, it threatened state-owned enterprises (Ren, 2003). However, nowadays, Lenovo China’s physical satisfaction includes several sides: salary, bonus, welfare and warrants. Bones have company’s, departmental and individual (Ren, 2003). For example, the half of the excess complete part shall be handed over to the corporation, and their department will dispose the rest of part to reward or give welfare (Pi, 2011). Welfare is normal welfare, such as insurance and housing public fund and so on. However, Lenovo China take the high standard. For instant, government has set a rule that each person have to save the 4 percent to8 percent of salary for the housing public fund, then Lenovo China will save the 8 percent for employe es (Ren, 2003). The advantage of method of motivation is that employee could be stimulated to devote oneself to fulfilment of overall objectives and personal expectations. In addition, the ways of stimulations of Lenovo China are very reasonable, because it is according to difference of various people to provide distinct stimulation, such as different personality, knowledge and features of jobs (Deng, 2003). Nevertheless, the more physical reward, the more expectations. Overmuch physical reward could not exactly stimulate improvement of employees, to the contrary, it perhaps leads the employee to be greedy and get private benefit without thinking of organizational goals. 2.2.3Recruiting and selecting employees The process of selecting employees in Lenovo China is very strict. There are two aspects which are inside recruitment and outside recruitment (Mullins, 2010). Inside recruitment involve choosing managers from within the organization, however, Lenovo China adhere to observe their abilities in same working conditions rather than proud achievements in the past (Deng, 2002), which is special. In addition, outside recruitment needs to hire new from outside by put up the information of campus recruitment at first (Pi, 2011). Then, beside testing of quality and evaluation of comprehensive capacityï ¼Å' Lenovo China also have a face to face conversation (Deng, 2002). There are nine questions Lenovo will ask: 1.self introduction, 2. what do you do in your company and what does your company do, 3. your superiorities and tell why Lenovo need you, 4. your weaknesses,5.do you have some suggestions for Lenovo,6.do you have wallet, 7.do watch the news, 8.what do you think of the job you apply and how to do well, 9.contrast with Lenovo and other brand, and the their advantages(Shi, 2008). Moreover, Lenovo China are willing to recruit the young who graduate from a higher institution, such as, Tsinghua University, Peking University and Beijing Science and Technology University and so on. In order to contest with competitors to seeking the persons with ability of professional technique and senior management, Lenovo China held recruiting activities in universities in advance, and conducting activities was earlier than foreign companies in each year. These activities included publicity of idea of Lenovo China and a meeting between students and outstanding employees with an on-site consultation of employment. Further, Lenovo China sponsored a competition of website designation for the national college students and set up a special award (Pi, 2011). Providing these opportunities helps Lenovo China to better promote their own and attract graduated students and graduands effectively. Moreover, nowadays, Lenovo china â€Å"focus on people who operate effectively on a global scale, regardless of their birth country†(Hegar and Hodgetts, 2011 p. 536). Lenovo China had appointed William Amelio who was an American executive from DELL in late 2005 (Schuman, 2010). However, in those years, â€Å"Lenovo was missing out on the faster-growing segments of PC markets† (Schuman, 2010 p.2). It demonstrated that foreign was not quit knowing about Chinese markets. 2.2.4Methods to improve development of employees Lenovo China emphasize training and retaining employees via four methods, because all of these trainings and results are associated with promotion (Wang, 2006). At first, each employee must be working from bottom of the corporation, then, having promotion step by step, due to organizational culture though this process being inherited and absorbed preferably(Ren, 2003). Secondly, they will choose those employees who are the most improved employees to training by experienced leaders teaching young challengers who will be the deputy jobs (Ren, 2003). Thirdly, it is essential to training coordinated operational capacity through teaching how to build teams (Ren, 2003). Finally, Lenovo China deem to be substance that is an assurance to attract talented persons, such as, giving ten present of stock of coordination, bonus and social welfare according to taking highest standards (Ren, 2003), especially, having vacation with salary and rewarding immediately (Deng, 2002). In addition, with regard to new employments, they all require to attend various oriented trainings. Then, they need to gradually accept trainings of organizational culture, generic skills and aspects of business and management (Deng, 2002). What’s more, though a series of trainings results, evaluation of specialists and 360 degree feedback analyse what aspects of the employees need to strengthen. Next, Lenovo China consider what aspects employees require to train according to their own development. Combination of two parts determines content of training of these employees and the whole year training plans. (Wang, 2006) On the other hand, the method of dismissal and post changing is an old way, but it is popular with employees. When an employee could not exactly exert his knowledge in his position, leaders will consider to giving his chance to check his ability by giving his specific objects. If he could deal with, it illustrates that the thoughts of leader has deviation. If he failed, the leader will have a personal talk when he admits his faults, the leader will continue to supply an opportunity to him. If he could not success until the third opportunity, he will meet refresh the position he stays at present. Then, even if the leader give him a demotion with the same wage as before (Deng, 2002), meanwhile, he will feel not uncomfortable. To conclude, it is a hommization management respecting for each member of the development, providing space of development and helping. 2.2.5The appraisal of individual performance Lenovo China pay attention to performance and ability with very strict appraisal of individual performance (Wang, 2006). Human resource department and every department of managers implement and control the appraisal through two ways which are performance measures and capability assessment. Performance was measured by quantitative evaluation of quality and quantity and cost of accomplished work and other contributions for company. Capability assessment involves work ability, work attitude and potential development (Wang, 2006). Moreover, there are four forms to apprise: superiors to subordinates, staff in the same level, subordinates to superiors, and the department to the department. Meanwhile, Lenovo China use questionnaires for departments evaluate each others in each year (Wang, Zhao and Li, 2009). Furthermore, each leaders and employees should set objectives they want to achieve in each quarter and year and describe what the goals are and list specifically. In the end of each year and quarter, Human resource department and every department of managers have to exam whether the work is achieved and how the quality of work results is (Wang, 2006). In a word, salary decision, promotion and content of trainings are based on these results of the appraisal (Wang, Zhao and Li, 2009). The advantage of the appraisal of individual performance is realizing the importance of taking responsibility by encouraging employees to put their own objectives into enterprise goals (Deng, 2002). In addition, it could supervise the accomplishment of the work. Further, organization could monitor and measure the performance with fairness. However, the appraisal of Lenovo China has disadvantages that employees are evaluated by managers. Due to unsteady factors like personal factors and environmental factors, the result of appraisal will be influenced. What’s more, sometimes emotional problems extremely affect results of evaluation in the process of the appraisal. Some performances are easy to measure like sales, but some are not. 2.3Lenovo China’s leadership Recently, the news said Liu ChuanZhi resigned Chairman of Lenovo China but be an honorary Chairman; what’s more, Yang YuanQing became the Chief executive officer and Chairman (Lenovo, 2011). Liu ChuanZhi, as one of pioneer of the Lenovo China, he creates lots of legends. Therefore, he has his own leadership style. He is more like a participative style of leadership. Liu ChuanZhi always let them raise their new idea, he just inspire them to bring up new thoughts without managing specific matters (Deng, 2002). Moreover, Yang YunQing’s management model is incomplete directive leadership, because he gives his advice at beginning, and then let employees give their views, and at last, he makes decision (Deng, 2002). Consequently, they have a common point which is allowing employees to participate in process of making decisions. They both wish employees’ creative power to get close to organizational goals (Deng, 2002). Hence, this way of encouragement is a great opportunity to fulfil ego needs. In addition, Liu ChuanZhi has distinctive personality and strong charisma which convinces employees, because he is a man of his words, which shows not only in high demands to him but his accomplished commitments for shareholders and employees (Deng, 2002). 2.4Lenovo China’s organizational culture Liu ChuanZhi pays more attention on organizational culture, because it is a representative of Lenovo China and has significance of goals accomplishment (Ren, 2003) like task culture (Mullins, 2010). â€Å"It is reflected in the statement: We do what we say and own what we do (Lenovo, 2011)†. There are four major organizational cultures. Firstly, Lenovo China quite advocate spirit of cooperation, because Lenovo China believe that it is a requirement of maintaining a consistent team (Deng, 2002). Secondly, they emphasize spirit of struggle, because Liu ChuanZhi said that five percent of hope turned into one hundred percent of reality. For example, in 1991, Lenovo Hong Kong had loss of more than fifty million Hong Kong dollars in three months, Lenovo overcame. As a result, Liu ChuanZhi suffered Meniere’s from syndrome (Deng, 2002). Thirdly, great reputation and credit is life of corporation. There are two types which are individuals and corporation. Individual reputation and credit means that working seriously and doing what they had said can win the trust of users, colleagues, subordinates and superior. The reputation and credit of corporation came from satisfaction of users. Lenovo China would rather lose money than lose credibility and reputation (Deng, 2002). For instance, in 2003, the rate of bad account is less than 0.005% (Ren, 2003). Fourthly, innovation and study are one of the cultural of corporation (Deng, 2002). Today’s successes are result from Lenovo China innovating and studying continually. Further, there is a special organizational culture; they have a â€Å"CTIME† for encouraging communicating like a friend. Meanwhile, CTIME means coffee time. Each afternoon at 1o’clock, employees and leaders go to the third floor and can talk easily. Especially, leaders will pay employees for coffee every Tuesday which is for encouraging friendly c ommunication from each other (Pi, 2011). Therefore, the culture of Lenovo China is successful to let employees have cohesions through communication and teamwork. In addition, the efficiency of execution is high because of nice teamwork. Overall, it is a relative perfect culture. 3.0Personal opinions on Lenovo China If there is an opportunity to work in Lenovo China, â€Å"YES† is the answer. At starting, this is a big and well-know corporation. For ego needs, it is based on satisfaction of physical needs at first, like food, clothes and so on. In addition, leadership in Lenovo China is different from other old state-enterprises, because it can produce a sense of belonging through each involvement of employees. When employees contribute to Lenovo China, it is important to embody the meaning of individual existence. They are not complete power control but participative style. Thus, there are more spaces to allow employees to develop strengths though proper freedom. Moreover, the relationship of colleagues is fair competitions instead of vicious and harmful competitions, which makes employments safety. Due to Lenovo China advocating friendly communication between leaders and employees, this policy can get rid of estrangement between people and give enough respect for employees which is attractive. Hence, ego needs could be satisfied. Then, for individual development, Lenovo China offer relevant help. They choose training employees to learn new skills for free, because they have their own training base. Apart from the theoretical knowledge, there are leaders passing on knowledge of their experiences which is treasure and cannot learn from books directly. However, the appraisal of individual performance has a little problem which is evaluation with personal emotions. Perhaps, it is unavoidable, but it can be evaluated through various channels. For example, individual evaluation could do like department appraisal which is evaluated by doing questionnaires in other departments, managers and employees. In other words, the appraisal of individual performance can be evaluated by colleagues, managers and users. 4.0Conclusion In conclusion, it can be seen then that Lenovo China’s people management is relatively successful. Success of Lenovo China is showed on three parts which are approach of people management, leadership and organizational culture. In particularly, in part of approach, it focuses on three aspects which are selecting employees and how to develop employees and the appraisal system. Especially, it indicates that the appraisal of individual performance has shortage. In addition, it mentions that organizational culture is the core of corporation. Finally, it gives opinions on human relation of Lenovo China and reasons. Reference CNN. 2011. Annual ranking of the world’s largest corporations [On-line]. CNN Money. Available from: http://money.cnn.com/magazines/fortune/global500/2011/full_list/401_500.html [Accessed 11 December 2011]. Deng, Z.H. 2002. The human resource management of legend. Hohhotï ¼Å¡Publication of the people of Inter Mongolia Ge, X. 2004. To discuss the Manpower Recourses Management of Legend Grow up. Journal of Liaoning Business Vocational College, 63(2), 18-19. [On-line]. Wang Fang Data. Available from: http://d.g.wanfangdata.com.cn/Periodical_lnswzyxyxb200402009.aspx [Accessed 11 December 2011]. 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